TIDMMAFL
RNS Number : 3848E
Mineral & Financial Invest. Limited
27 February 2020
MINERAL AND FINANCIAL INVESTMENTS LIMITED
Investment Update: Ascendant Resources Files the Technical
Report for the Preliminary Economic Assessment for the Lagoa
Salgada VMS Project In Portugal with the Ontario Securities
Commission
HIGHLIGHTS:
-- Maiden PEA outlines a highly profitable project with low LOM
cash costs of $0.44[1]/lb ZnEq and AISC of $0.66/lb ZnEq
-- Lagoa Salgada has outlined 10.3MT in M&I Resources at
9.1% ZnEq[2] and 2.5MT in Inferred Resources at 5.9% ZnEq in the
North Zone only from 60 holes totaling 13,380 metres of drilling
with substantial additional resources expected from future
drilling
-- The South and Central Zones, with reported Resources
delineated by only 20 holes totaling 9,849 meters of drilling, are
not included in the current PEA, yet both zones are expected to
have a significant benefit to future development
-- Lagoa Salgada represents a substantial standalone project
that has significant potential for growth, expansion and additional
value creation
GEORGE TOWN, CAYMAN ISLANDS, February 27, 2019 - Mineral and
Financial Investments Limited (LSE-AIM: MAFL) ("M&FI" or the
"Company") is very pleased to announce that Ascendant is today
filing the Technical Report, entitled, "Technical Report and PEA
for the Lagoa Salgada Property, Setúbal District, Portugal",
supporting the robust results from the maiden Preliminary Economic
Assessment ("PEA") for the North Zone at the Lagoa Salgada VMS
project located on the Iberian Pyrite Belt in Portugal, with the
Ontario Securities Commission . The Technical Report has an
effective date of December 19, 2019 and was prepared in accordance
with Canadian National Instrument 43-101 ("NI 43-101") "Standards
of Disclosure for Mineral Projects".
PEA Overview :
Highlights of the key project metrics are provided in the
following table on a 100% basis:
PEA Key Highlights
Project IRR pre-tax 37%
---------------------
NPV(8%) pre-tax $137 million
---------------------
Project IRR after-tax 31%
---------------------
NPV(8%) after-tax $106 million
---------------------
Life of mine pre-tax cash flow $ 250 million
---------------------
Life of mine after-tax cash flow $ 202 million
---------------------
Construction period 2 years
---------------------
Payback period 4 years
---------------------
Life of mine 9 years
---------------------
Average Annual Production 1.0 million tonnes
---------------------
Initial Capital Expenditure $ 162.7 million
---------------------
LOM Sustaining Capital Expenditure &
Closure $ 20.2 million
---------------------
Average annual operating costs $ 49.43 /t milled
---------------------
Average Annual operating costs (C1) $0.44 /lb ZnEq
---------------------
Average annual All-In Sustaining Costs $0.66 /lb ZnEq
(AISC)
---------------------
Metal Price Assumptions(1)
---------------------
Zinc $1.20/lb
---------------------
Lead $1.05/lb
---------------------
Copper $2.70/lb
---------------------
Silver $18/oz
---------------------
Gold $1,400/oz
---------------------
Tin $7.50/lb
---------------------
Recovery Assumptions Massive Sulphide
---------------------
Zn 80%
---------------------
Pb 65%
---------------------
Cu 25%
---------------------
Ag 75%
---------------------
Au 75%
---------------------
Sn 30%
---------------------
Recovery Assumptions Gossan
---------------------
Pb 65%
---------------------
Sn 40%
---------------------
Ag 66%
---------------------
Au 86%
---------------------
Average Annual Metal Production
---------------------
Zn 12.5kt
---------------------
Pb 13.7kt
---------------------
Cu 0.2kt
---------------------
Ag 1.1Moz
---------------------
Au 13koz
---------------------
Sn 0.3kt
---------------------
Notes to Table: The project economics have been calculated using
consensus prices at the time of the Resource Estimate report in
September 2019.
The table above confirms that the Gold recovery assumptions in
the report for the Gossan are 86% and the silver recovery
assumptions for the Gossan are 66%.
The PEA was prepared by AMC Mining Consultants (Canada) Ltd
(AMC) with contributions from Resource Development Inc (RDI) for
Mineral Processing and Micon International Limited (Micon), who
estimated the Mineral Resources The PEA is preliminary in nature,
as it includes Inferred Mineral Resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as Mineral
Reserves, and there is no certainty that the preliminary economic
assessment will be realized.
The Technical Report will be available for review on the
Company's website.
Technical Disclosure
The reader is advised that the PEA summarized in this press
release is intended to provide only an initial, high-level review
of the project potential and design options. The PEA mine plan and
economic model include numerous assumptions and the use of Inferred
Mineral Resources. Inferred Mineral Resources are considered to be
too speculative to be used in an economic analysis except as
allowed for by Canadian Securities Administrators' National
Instrument 43-101 in PEA studies.
Qualified Persons
This PEA was prepared for Ascendant Resources Ltd by AMC and
other industry consultants, all Qualified Persons ("QP") under
National Instrument 43-101. The scientific and technical
information in this press release has been reviewed by the
following QPs as described below:
-- The Mineral Resource estimate contents of this press release
have been reviewed and approved by Charley Murahwi, M.Sc., P.Geo.,
Pr. Sci. Nat., FAusIMM, Senior Geologist, Micon International
Limited.
-- The Mining Engineering content of this press release has been
reviewed and approved by Gary Methven P.Eng. of AMC Mining
Consultants (Canada) Ltd. who is an "Independent Qualified Person"
as defined by National Instrument 43-101.
-- The Infrastructure content of this press release has been
reviewed and approved by George Zazzi P.Eng. of AMC Mining
Consultants (Canada) Ltd. who is an "Independent Qualified Person"
as defined by National Instrument 43-101.
-- The Metallurgical and Process Plant technical contents of
this press release have been reviewed and approved by Deepak
Malhotra of as President of Pro Solv Consulting who is an
"Independent Qualified Person" as defined by National Instrument
43-101.
Review of Technical Information
The scientific and technical information in this press release
has been reviewed and approved by References in this announcement
to exploration results and resource updates have been approved for
release by Joao Barros, BSc (Engineering), MSc (Geology), who has
more than 16 years of relevant experience in the field of activity
concerned. Mr. Barros is a Member of the Portuguese Engineers
Association. Mr. Barros is employed by Redcorp Empreedimentos
Mineiros, Lda., a 75% owned subsidiary of M&FI, and has
consented to the inclusion of the material in the form and context
in which it appears.
About Mineral and Financial Investments Limited :
Mineral and Financial Investments Ltd is an investment company
whose purpose is to create value for its shareholders by investing
in, financing, and advising companies active in the natural
resources sectors, with a particular emphasis on mining and
exploration companies. Investments will be made in the securities
of quoted and un-quoted companies and their assets, units in
open-ended investment companies, exchange traded funds, physical
commodities, derivatives, and other hybrid securities.
As the Company's assets grow the intention is to diversify
company, geographic, and commodity risks. The Company will have a
blend of passive and active investments and, if and when
appropriate, it may seek to gain control of an investee
company.
Returns to Shareholders are expected to be by way of growth in
the value of the Company's Ordinary Shares. The Company may also
from time to time make market purchases to buy in the Company's
Ordinary Shares if the Directors consider this to be in the
interests of Shareholders as a whole.
FOR MORE INFORMATION:
Katy Mitchell and Jessica Cave, WH Ireland Limited +44 161 832 2174
Jon Belliss, Novum Securities Limited +44 207 399 9400
Jacques Vaillancourt, Mineral & Financial Investments Ltd.
+44 780 226 8247
[1] All dollar amounts are in US Dollars unless otherwise
specified, results are reported on a 100% basis
[2] ZnEq% = ((Zn Grade*25.35)+(Pb Grade*23.15)+(Cu Grade *
67.24)+(Au Grade*40.19)+(Ag Grade*191.75))/25.35
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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